Blogging for bucks

For all the hoopla surrounding new media (blogs, podcasts, social media), it’s still a rough landscape for those looking to turn a profit. Take Twitter, which has tens of millions of users and active accounts from every organization and corporation out there. For all the investment it has generated, it still struggles to find a viable business model.

It should come as no surprise then that very few are using blogs as a direct money generator. Technorati’s annual State of the Blogosphere survey for 2009 shows that very few are cashing in just through a blog. The survey polled nearly 3,000 bloggers, and less than a quarter are blogging professionally. Of that subset, just 17 percent say it’s their primary source of income.

So why is everyone under the Internet sun launching and nurturing a blog? It’s because they have potential as a marketing tool driving customers to the main product. It’s hard to sell ads on even a well-trafficked blog. But if the blog has built up a loyal readership, it can then turn that audience into customers.

There’s a tricky balancing act to follow. Straight-up shilling will be recognized as advertising and tuned out the way we fast forward through commercials when given the chance. But if the blog is offering useful info, it becomes both an engaging read and a chance to demonstrate expertise in a topic. This builds relationships that will create customer loyalty for a commodity or service.

It’s the same thing with Twitter. A growing segment of users aren’t signing up to tweet about their lunch plans, they’re marketing their companies. News organizations have recognized this value. Travis Lusk, director of new media for WCBS, spoke to my class today about what works in the New York radio market and emphasized the importance of actively using Twitter to cultivate an audience and drive followers to top stories.

Anyone who evaluates new media in terms of direct revenue is doomed for disappointment. But viewed as a marketing tool for a larger campaign, its value is immense. Not only can it be effective in generating sales, it’s far cheaper than traditional print and broadcast advertising, and builds the kind of loyalty no sum of ad dollars can buy.

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